India and UAE Strengthen Economic Ties with New Initiatives
The United Arab Emirates and India have taken significant steps to enhance their economic partnership through several key initiatives. These developments aim to boost bilateral investments, facilitate cross-border transactions, and strengthen supply chain cooperation.
Investment Treaty Boosts Bilateral Investments
A new bilateral investment treaty (BIT) between India and the UAE came into effect on August 31, 2024. This agreement replaces the previous treaty and provides a robust framework for investment protection. Key features include provisions for arbitration, defined investment protections, and a balance between investor rights and state regulations. The treaty is expected to stimulate bilateral investments by offering an independent forum for dispute settlement through arbitration.
UPI Payments Facilitate Seamless Transactions
In a move to enhance economic transactions, the UAE has introduced India’s Unified Payment Interface (UPI) across various outlets. Al Maya Group, a UAE-based business conglomerate, has begun accepting UPI payments, marking a significant step in UPI’s global expansion. This initiative, facilitated by NPCI International and Network International, aims to provide a seamless payment experience for Indian tourists and residents in the UAE. The first UPI transaction took place at Al Maya Supermarket, attended by the Deputy Consul General of India in Dubai, Yatin Patel.
Additionally, India and the UAE have signed a Memorandum of Understanding (MoU) to secure critical mineral supply chains. This agreement involves cooperation in mineral exploration in third countries, aiming to enhance supply chain resilience. The initiative is part of broader efforts under the India-Middle East-Europe Economic Corridor framework.
These developments underscore the UAE’s and India’s commitment to deepening their economic relationship, fostering greater investment, and improving trade facilitation. The new investment treaty, UPI payment integration, and supply chain cooperation are expected to create a more conducive environment for businesses and investors from both countries, further strengthening the bilateral economic ties between the UAE and India.
